Different perspective on sunk cost

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Great feedback and to add a little bit of a different perspective on sunk cost, managers often fall into the trap of investing more resources into a failing project with the idea or hope that the money already spent on the project (sunk cost) will be recovered and the failing project will eventually be profitable. Instead, if a project is failing, managers should recognize that they have sunk costs (costs that cannot be recovered) related to the failing project and not be arrogant and continue to pump more cash into the failing project.

Reference no: EM133679786

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